Consol Energy Inc Cuts Spending To Save Company

Along with other devices and appliances, the boilers are driven by the right energy power surging through it. These boilers are very useful in keeping a home warm and in turning freezing water during the winter to a hot one so that you can take a shower. There is now an increase of demand of this type of equipment. This paved way for boiler repair servicing companies to make a very successful business venture.

The global economy
The economy is made up of different segments and sectors of industry that are interlocking with one another. When one is critically damaged and affected, the other parts also suffer. For the last couple of months, the prices of oil has been moving down and many are economies are already suffering the adverse effects of this global wide crisis. Oil companies are also very much affected.

Consol Energy
One of the companies that is greatly affected by the downward spiral in the prices of oil is Consol Energy Inc. They have released a statement that the company will not be venturing into activities that involves drilling of new oil as well as gas wells in the next year and a half. The company warned investors earlier this week. However, the spokesperson cited that the company will still be producing at least 30 percent more gas energy within the year and about 20 percent more next year.Consol Energy further declared that it will lay down its two main rigs and will be focusing instead on building out pipelines that gathers gas and compressor stations in order to bring into functionality more wells.

This is all part of the company’s tightening of its expenses. This will include a further slashing of its capital spending this year to around 800 million dollars from a staggering projected amount of 1 billion dollars. The gas budget for next year is only between the range of 400 to 500 million dollars. The company’s main goal is to accumulate free cash flow in the next year and a half.

This is not the first time that an oil company has declared that it will cut down some of its expenses. Shell has also expressed the same sentiments and other companies as well.